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County reports September investment returns above inflation; portfolio strategy to hold to maturity
Summary
Deputy Treasurer Tyler White reported the county’s investment portfolio earned an effective 4.17% rate of return for September 2025 and a year‑to‑date rate of 4.42%; the portfolio strategy remains to hold assets to maturity to avoid realized losses and to remain compliant with Public Act 20.
Deputy Treasurer Tyler White presented the county’s monthly investment report for the period ending Sept. 30, 2025, telling commissioners the county’s portfolio continued to earn positive returns and that the county’s strategy remained to hold assets to maturity to avoid realizing losses.
Key figures White reported
- Par value of portfolio: $180,184,648.85. - Market value of portfolio (Sept. 30): $179,869,728.46. - Mark‑to‑market variance: approximately $31,414,920.39 (an improvement from August’s variance). - September earned income: $560,716.57 on an average daily balance of $163,681,744.49 — an effective monthly rate of return reported as 4.17% (inclusive of realized gains/losses and amortization). - Year‑to‑date earned income: $5,369,626.12 with an effective YTD return of 4.42% on the average daily balance cited in the report.
White said the county’s pooled funds and short‑term liquidity vehicles were yielding over 4% monthly while the county preserved a strategy that avoids selling for a loss. He noted the portfolio’s YTD return exceeded recent inflation measures (as of August, inflation was cited as 2.9% in the presentation), giving the county a net gain in purchasing power on the investment portfolio.
Commissioner questions touched on the different inflation and energy indices cited in the report (food, energy, shelter and medical services) and on whether Federal Reserve rate cuts would quickly affect account yields. White responded that market pricing indicated additional cuts might be expected and that the county’s pooled liquidity funds and partners would reflect those moves when they occur.
Why it matters
Investment income is an important component of county revenue, and sustained positive returns can help support the general fund and budget stability. Administration said they seek to hold assets to maturity under the county’s investment policy to avoid realized losses and to remain Public Act 20 compliant.
Speakers
- Tyler White — Deputy Treasurer, Kalamazoo County (presented figures and explained portfolio strategy) - Commissioner Hepler, Commissioner Taylor and others asked follow‑up questions about inflation and rate‑cut timing.
